AMERICAN POLICY

Manawatu Standard, Volume LIII, Issue 256, 26 September 1933, Page 7

AMERICAN POLICY

CREDIT REINFORCEMENT. ELIMINATION OF INFLATION. PRICE INCREASE GOAL. (United Press Association. —By Electric Telegraph.—Copyright. 1 WASHINGTON, Sept. 24. President Roosevelt and Government financial leaders mapped out a' programme for credit expansion to-night in conference at the White House that centred on the release of funds in closed banks.

It was emphasised both by the President and his conferees that no new moves other than that of reinforcing the country’s credit structure were in contemplation. This is accepted generally as definitely eliminating at this time any inflation of the United States currency. It means that the Government is going to use every power to put into circulation money now lying idle in the banks’ tills and funds locked up in closed banks. President Roosevelt is primarily interested in co-ordinating all Government and financial agencies to assure full support for agriculture and business in the price-lifting and recovery programme. Substantial increases in farm juices in the next two months are marked off as a goal of the Roosevelt Administration through the extension of the cotton loan plan to drive farm purchasing power upwards. Production control will bo definitely linked with the credit extension plan. Farm officials said that the Secretary of Agriculture, Mr Henry Wallace, and the Farm Administrator, Mr George Peek, were prepared for early meetings with representatives of the producers to consider plans. A reduction of next year’s United States wheat plantings of more than 3,000,000 acres is assured by the Agricultural Adjustment Administration on the basis of the latest reports of the campaign to obtain agreements among farmers to curtail acreage. BLANKET CODE. FULL TEXT OF CONDITIONS. The whole world is talking about President Roosevelt’s “Blanket Code” for the promotion of America’s economic recovery, but there is little exact knowledge of it outside the United States. As a matter of fact (says a London correspondent writing on August 3) the full text has only just reached Loudon, and is as follows “During the period of the President’s emergency rc-employment drive, that is to say, from August 1 to December 31, 1933, or to any earlier date of approval of a code of fair competition to which he is subject, the undersigned hereby agrees with the .President as follows: “(1) After August 31, 1933, not to employ any person under 16 years of age, except that persons between 14 and 16 may be employed (but not in manufacturing or mechanical industries) for not exceeding three hours per day, and those hours between 7 a.m. and 7 p.m. in such work as will not interfere with hours of day school. “(2) Not to work any accounting, clerical, banking, office, service or sales employees (excepting outside salesmen) in any store, office, department, establishment, or public utility, or on any automotive or horse-drawn passenger, express, delivery or freight, service, or in any other jilace or manner, for more than forty hours in any one week, and not to reduce the hours of any store or service operation to below fifty-two hours in any one week, unless such hours were less than fiftytwo hours per week before July 1, 1933, and in the latter case not to reduce such hours at all. “(3) Not to employ any factory or mechanical workers or artisans more than a maximum week of thirty-five hours until December 31, 1933, but with the right to work a maximum week of fory hours for any six weeks within this period and not to employ any worker more than eight hours in any one day. “(4) The maximum hours fixed in the foregoing paragraphs (2) and (3) shall not apply to employees in establishments employing not more than two persons in towns of less than 2500 population, which towns are not part of a larger trade area; not to registered pharmacists or other professional persons employed in their profession; not to employees on emergency maintenance and repair work; not to cmjjloyees in a managerial or executive capacity who now receive more than 35 dollars per week; nor to very special cases where restriction of hours of highly skilled workers on continuous processes would unavoidably reduce production, but, in any such special case, at least time and one-third shall be j>aid for hours worked in excess of the maximum. Population for the purposes of this agreement shall be determined by reference to the 1930 Federal census. “(5) Not to pay any of the classes of employees mentioned in j>aragraph (2) less than 15 dollars per week in any city of over 500,000 population or in the immediate trade area of such city, nor less than 14.50 dollars per week in any city of between 250,000 and 500,000 population, or in the immediate trade area of such city; nor less than 14 dollars per week in any city of between 2500 and 250,000 population, or in the immediate trade area of such city; and in towns of less than 2500 population to increase all wages by not less than 20 per cent., provided that this shall not require wages in excess of 12 dollars per week. “(6) Not to pay any employee of the classes mentioned in paragraph (3) less than 40 cents per hour, unless the hourly rate for the same class of work on July 15, 1929, was less than 40 cents per hour, in which latter case not to pay less than the hourly rate on July 15, 1929, and in no event less than 30 cents per hour. It is agreed that this paragraph establishes a guaranteed minimum rate of pay regardless of whether the employee is compensated on the basis of a time rate or on a piece-work performance. “(7) Not to reduce the compensation for employment now in excess of the minimum wages hereby agreed to (notwithstanding that the hours of work in Such employment may be hereby reduced) and to increase the pay for such employment by an equitable readjustment of all pay schedules. “(8) Not to use any subterfuge to frustrate the spirit and intent of this agreement, which is, among other things, to increase employment by a universal covenant, to remove obstructions to commerce, and to shorten hours and to raise wages for the shorter week to a living basis. “(9) Not to increase the price of any merchandise sold after the date hereof over the price of July 1, 1933, by more than is necessary by actual increases in production replacement, or invoice casts of merchandise since July 1, 1933, or by taxes or other costs resulting from action taken pursuant to the Agricultural Adjustment Act, and in setting such price increases, to give full weight to the

jirobable increases in sales volume and to refrain from taking profiteering advantage of the consuming jniblic. “(10) To support and patronise establishments which also have signed this agreement and are listed as members of the N.R.A. (National Recovery Administration). “(11) To co-operate to the fullest extent in having a code of fair competition submitted by his industry at the earliest possible date, and in any event before September 1, 1933. “(12) Where before June 16, 1933, the undersigned had contracted to purchase goods at a fixed price for delivery during the jieriod of this agreement, the undersigned will make an appropriate adjustment of said fixed price to meet any increase in cost caused by the seller having signed this President’s re-employment agreement or having become bound by any code of fair competition approved by the President. “(13) This agreement shall cease upon approval by the President of a code to which the undersigned is subject; or, if the N.R.A. so elects, upon submission of a code to which the undersigned is subject and substitution of any of its provisions for any of the terms of this agreement. "(14) It is agreed that any person who wishes to do his part in the President’s re-employmeut drive by signing this agreement, but who asserts that some particular provision hereof, because of peculiar circumstances, ''rill create great and unavoidable hardship, mav obtain the benefits hereof by signing this agreement and putting it into effect, and then, in a petition approved by a representative trade association of his industry, or other representative organisation designated by N.8.A., may apply for a stay of any such provision pending a summary investigation by N.R.A.. if he agrees in such application to abide by the decision of such investigation.